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UQSUQTUUQ/GJOA HAVEN
A Gjoa Haven contractor who cancelled contracts with the housing corporation because of a serious illness says his company is now close to bankruptcy due to lawsuits involving the territorial government.

Charlie Cahill says his company, CAP Enterprises Ltd., is nearly bankrupt because it cannot take a chance on doing any work for the Nunavut Housing Corporation due to outstanding lawsuits and limited funds. - photo courtesy of Charlie Cahill

Charlie Cahill, manager of CAP Enterprises Ltd. in Gjoa Haven, said he had to cancel $2.62 million worth of contracts with the Nunavut Housing Corporation in the spring of 2010 because he developed a rare side effect from the H1N1 flu vaccine he received in November 2009, which forced him to begin using a wheelchair.

He said no one could take over his position during his absence from work. Therefore the housing contracts in Gjoa Haven went unfulfilled.

"I nearly died from the flu vaccine," he told Nunavut News/North. "It was a very legitimate reason to have to cancel and (the housing corp's) response is, they sue us and they hold back a whole bunch of money that would help us continue and basically put us out of business. It doesn't seem fair."

The housing corporation filed a lawsuit against CAP Enterprises in May 2011, seeking close to $600,000 from the Gjoa Haven-based company. Court documents show the housing corp. had awarded four labour contracts to CAP Enterprises for the construction of 13 housing units totaling $2.62 million.

When those contracts were cancelled, the government re-tendered them and they fetched a bid of approximately $3.22 million, according to court documents. The government is seeking the difference from CAP Enterprises.

In its statement of defence, Cahill's company states the tenders it submitted were not adequate - no security deposit was given, there was no confirmation of certain insurance and proof of good standing with the Workers' Compensation Board was not provided. The company is arguing that without valid tenders, no valid contract with the housing corporation was formed.

Then, in August 2011, CAP Enterprises Ltd. filed a lawsuit alleging the Nunavut Housing Corporation owes it about $240,000 for unpaid invoices, materials and/or services, court documents show. In its statement of defence, the housing corporation admits it is holding back some $120,000 from CAP Enterprises but will pay the company some $100,000 as some work has been completed.

The documents also show the housing corporation is alleging the other money sought by CAP Enterprises is for "incremental expenses over and above the contract price" or for funds related to invoices the corporation states it does not have.

Cahill said he is not performing any further work for the housing corporation until the lawsuits are resolved, and he is afraid the corporation will not pay him. He described the situation as "terrible," with CAP Enterprises moving closer to bankruptcy.

"We might as well shut down. We might as well close down and go bankrupt," he said.

On a personal level, he said he is taking medications daily and his health has improved. Since Christmas, he is able to walk for short distances, allowing him to do such things as grocery shopping.

CAP Enterprises, in business since 2002, is owned by Cahill and president Peter Akkikungnaq and vice-president Ben Porter Sr. The company did $3 million to $4 million worth of work each year between 2006 to 2009, with about 75 per cent of that being for the housing corporation, according to Cahill.

During the summers of 2007 to 2009, the company employed 80 to 90 people, including some 60 Inuit. Now it has about 25 employees.

A Nunavut Housing Corporation representative said the organization will not comment.

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